What to expect from bitcoin and crypto markets in the 2nd half of 2025

Navigating the Crypto Landscape: What to Expect in the Second Half of 2025

The first half of 2025 has been a remarkable period for the cryptocurrency market, marked by increasing acceptance in regulatory circles and growing interest from traditional finance. Bitcoin, in particular, has shown strong performance, outpacing major indices like the S&P 500 and nearing its all-time highs. As we move into the latter half of the year, several key trends are poised to shape the future of digital assets.

The Rise of Bitcoin Treasury Companies

One of the most significant developments has been the emergence and increasing dominance of 'bitcoin treasury companies'. These are businesses that strategically hold a substantial portion of their reserve assets in bitcoin, viewing it as a hedge against inflation and a potential future global reserve asset. While companies like Strategy (formerly MicroStrategy) pioneered this approach, 2025 has seen new entrants and growing adoption.

Experts anticipate that the trend of companies adding bitcoin to their balance sheets will not only continue but accelerate. The second half of 2025 is expected to be a pivotal moment, with larger, well-known corporations potentially establishing bitcoin positions and defining their allocation strategies. For businesses of all sizes, the question seems to be shifting from 'if' to 'when' they will incorporate bitcoin into their treasury strategy. This represents a significant validation and integration of bitcoin into the traditional financial ecosystem.

Expanded Public Market Access: More ETFs and IPOs

Direct exposure to crypto through public markets is set to expand beyond existing spot Bitcoin and Ether ETFs. Analysts predict the approval of spot ETFs for other digital assets by the end of the year. Furthermore, enhancements to current ETF structures, such as enabling in-kind redemptions and staking rewards, are considered likely, offering investors more sophisticated ways to engage with crypto within regulated frameworks.

The success of recent initial public offerings (IPOs) by crypto-native companies like stablecoin issuer Circle, Galaxy, and eToro signals strong investor appetite. This success is expected to pave the way for more major players in the crypto space, including exchanges like Gemini and Kraken, and blockchain technology firms such as Consensys and Ripple, to pursue public listings. These IPOs provide traditional investors with new avenues to gain exposure to the growth of the crypto industry.

Altcoins: Beyond Bitcoin Beta

The increasing efficiency of gaining bitcoin exposure through treasury holdings and regulated instruments has led some to question the future demand for altcoins. Historically, altcoin demand stemmed from seeking leveraged exposure to bitcoin's movements (beta) or from their unique use cases not fulfilled by Bitcoin's blockchain.

While the 'beta' demand might be increasingly met by new bitcoin instruments, analysts believe that altcoins with strong, distinct fundamental value propositions still have considerable growth potential. Regulatory developments, particularly a more favorable environment for decentralized finance (DeFi), could unlock powerful new trends and highlight altcoins that provide unique utility and innovation.

Ethereum's Crossroads

Ether, the second-largest crypto asset, finds itself at a critical juncture. It has notably underperformed bitcoin and some smaller competitors in recent years. Despite its widespread technological adoption by major entities like Coinbase and stablecoin issuers, there are ongoing debates about whether this usage sufficiently accrues value to the ether token itself in the long term.

However, positive signs suggest a potential shift in sentiment within the Ethereum ecosystem. Its established ties to traditional capital markets, evidenced by an active CME futures market and the launch of spot ETFs, are key price drivers in the current environment. Additionally, many institutional investors remain underweight in ether. The potential inclusion of staking features in spot ether ETFs could significantly boost institutional adoption, potentially leading to a meaningful catch-up in performance relative to bitcoin.

Looking Ahead

The second half of 2025 promises continued evolution and maturity for the crypto market. Increased corporate adoption of bitcoin, expansion of regulated investment products, and the potential for value-driven altcoins and a resurgent Ethereum all point to dynamic opportunities. Understanding these key trends will be crucial for navigating the landscape effectively.